Aqua Metals Secures Tax Abatement for Sierra ARC Battery Recycling Campus, Expected to Boost Nevada’s Clean Energy Economy by $392 Million

Rhea-AI Summary

Aqua Metals, Inc. (AQMS) received a $2.2 million economic incentive package from the Nevada Governor’s Office of Economic Development to aid in the expansion of its Sierra AquaRefining™ Campus. The package includes partial tax relief over a ten-year period for equipment and building improvements, with projected total economic impact exceeding $392 million over the next 10 years. The company's focus on sustainable recycling aligns with Nevada's clean energy sector, creating job opportunities and driving economic growth. The tax abatement will support the development of a commercial-scale recycling facility, with Aqua Metals' commitment to environmental sustainability and zero wastewater production.

Positive

• Aqua Metals received a $2.2 million economic incentive package from the Nevada Governor’s Office of Economic Development.
• The package includes partial tax relief over a ten-year period for equipment and building improvements.
• Projected total economic impact exceeds $392 million over the next 10 years.
• The company's focus on sustainable recycling aligns with Nevada's clean energy sector, creating job opportunities and driving economic growth.
• The tax abatement will support the development of a commercial-scale recycling facility.
• Aqua Metals is committed to environmental sustainability and zero wastewater production.

Negative

• None.

Economist

The economic incentive package granted to Aqua Metals by the Nevada Governor’s Office of Economic Development (GOED) is a strategic move designed to stimulate local economic growth and job creation. The projected total economic impact of over $392 million in the next decade, as well as the creation of direct and indirect net new tax revenues estimated at $4.6 million, reflects a significant positive multiplier effect on the Nevada economy. This is a clear example of public policy aimed at fostering industrial development, particularly in sectors deemed strategically important, such as sustainable recycling and clean energy.

From an economic standpoint, the tax relief over ten years acts as a catalyst for capital investment in infrastructure and equipment. It is indicative of a broader trend where states compete to attract high-tech and sustainable industries by offering financial incentives. The potential for job creation across various skill levels is likely to contribute to a diversified local economy and could serve as a model for other states looking to attract similar investments.

Environmental Policy Analyst

Aqua Metals' expansion into Nevada represents a convergence of economic development and environmental sustainability. The company's innovative AquaRefining™ technology, which promises zero wastewater production and a 99% reduction in landfill waste, aligns with broader environmental goals and policy initiatives. The environmental benefits of this technology are substantial, as it addresses the critical issue of battery recycling in a manner that minimizes ecological impact.

The policy implications of this incentive package suggest that Nevada is prioritizing green technologies and industries, potentially setting a precedent for other regions. The state's investment in Aqua Metals could be seen as a strategic move to position itself as a leader in the emerging global lithium battery economy, which is increasingly important as the world shifts towards renewable energy sources and electric vehicles.

Market Research Analyst

The sustainable lithium-ion battery recycling industry is poised for growth, driven by the global push for electric vehicles and renewable energy storage solutions. Aqua Metals' Sierra AquaRefining™ Campus (ARC) is strategically positioned to capitalize on this market trend. The tax abatement and economic incentive package will likely enhance the company's competitive edge by reducing capital expenditure and operational costs, which could translate into a more attractive pricing model for their recycling services.

Investor attention should be drawn to the potential scalability of Aqua Metals' proprietary AquaRefining™ technology. If proven successful at commercial scale, it could disrupt traditional battery recycling methods and create new market dynamics. The anticipated full production capacity of 3,000 tonnes per year by 2025 may serve as a significant benchmark for the company's operational capabilities and market potential.

RENO, Nev., Jan. 30, 2024 (GLOBE NEWSWIRE) -- Aqua Metals, Inc. (NASDAQ: AQMS), a pioneer in sustainable lithium-ion battery recycling, today announced the receipt of an economic incentive package of approximately $2.2 million from the Nevada Governor’s Office of Economic Development (GOED) which will assist the Company in its Nevada expansion. Pursuant to the terms of the abatement, this impactful support encompasses partial tax relief over a ten-year period towards approximately $17 million worth of equipment and $18 million worth of building and land improvements planned for the first phase of the Company’s Sierra AquaRefining™ Campus (ARC).

According to GOED, the total economic impact of Aqua Metals investments and job creation to the state of Nevada is projected to total more than $392 million over the next 10 years defined as benefits the Company and its operations will have on the community and state economy measured by total number of jobs, payroll and created output. The investments are also projected to generate approximately $4.6 million of direct and indirect net new tax revenues for the state.

“We are immensely grateful for the programs from the State of Nevada via the Governor’s Office of Economic Development that support new and expanding companies and appreciate the strong affirmation of our innovative approach to sustainable recycling,” said Steve Cotton, President and Chief Executive Officer of Aqua Metals. “This economic incentive will bolster our efforts at the Sierra ARC, further enabling us to continue creating good-paying jobs and contribute even more significantly to Nevada's growing clean energy sector.”

Aqua Metals has made significant strides in advancing its Sierra ARC project, having initiated the construction and upfitting of its five-acre clean metals recycling campus in 2023. The focus on Phase One of the Sierra ARC project is bolstered by the tax abatement aimed at accelerating the facility's development. Recent progress at the campus includes the completion of cement pouring for new flooring, the installation of steel framework for the internal superstructure, and upgrades to electrical and mechanical systems in the building in preparation for equipment installation. This progress paves the way for black mass to be introduced into the Company’s proprietary AquaRefining™ system in the first half of 2024, with Phase One of the commercial-scale recycling facility on track, subject to additional financing, to reach full production capacity of 3,000 tonnes per year in 2025. The Company is currently operating its successful Li AquaRefining pilot facility 24x5.

Aqua Metals was supported in completing the application process by the Economic Development Authority of Western Nevada (EDAWN).

“The approval to move forward with the project in the Tahoe Reno Industrial Center is a significant win for Nevada, helping propel it to the forefront in the race to secure major clean energy projects of international significance,” stated Nancy McCormick, senior vice president of business retention, expansion, and workforce development for EDAWN. “Aqua Metals’ vision for the sustainable recycling of critical battery minerals aligns perfectly with Nevada’s aspirations, creating an unparalleled opportunity for the state to expand and solidify its leadership in the emerging global lithium battery economy.”

The economic and environmental benefits of this development are significant. The tax abatement will be instrumental in creating a range of good-paying jobs, offering opportunities across various skill levels, and driving economic growth in Nevada. Furthermore, Aqua Metals is committed to being a responsible corporate neighbor. Its innovative approach to recycling not only sets the highest standard in low emissions, but also ensures zero wastewater production and elimination of 99% of landfill waste associated with traditional recycling methods. This commitment underscores Aqua Metals’ dedication to environmental sustainability and its role in building a thriving local community.

Learn more about the Sierra ARC: https://www.aquametals.com/sierra-arc-campus/

About Aqua Metals

Aqua Metals, Inc. (NASDAQ: AQMS) is reinventing metals recycling with its patented AquaRefining™ technology. The Company is pioneering a sustainable recycling solution for materials strategic to energy storage and electric vehicle manufacturing supply chains. AquaRefining™ is a low-emissions, closed-loop recycling technology that replaces polluting furnaces and hazardous chemicals with electricity-powered electroplating to recover valuable metals and materials from spent batteries with higher purity, lower emissions, and minimal waste. Aqua Metals is based in Reno, NV and operates the first sustainable lithium battery recycling facility at the Company’s Innovation Center in the Tahoe-Reno Industrial Center.

To learn more, please visit www.aquametals.com

Aqua Metals Social Media

Aqua Metals has used, and intends to continue using, its investor relations website (https://ir.aquametals.com), in addition to its Twitter, Threads, LinkedIn and YouTube accounts at https://twitter.com/AquaMetalsInc (@AquaMetalsInc), https://www.threads.net/@aquametalsinc (@aquametalsinc), https://www.linkedin.com/company/aqua-metals-limited and https://www.youtube.com/@AquaMetals respectively, as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

Safe Harbor

This press release contains forward-looking statements concerning Aqua Metals, Inc. Forward-looking statements include, but are not limited to, our plans, objectives, expectations and intentions and other statements that contain words such as "expects," "contemplates," "anticipates," "plans," "intends," "believes", "estimates", "potential" and variations of such words or similar expressions that convey the uncertainty of future events or outcomes, or that do not relate to historical matters. The forward-looking statements in this press release include our expectations for our pilot and commercial-scale recycling plants, our ability to recycle lithium-ion batteries and the expected benefits of recycling lithium-ion batteries. Those forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially. Those risks disclosed in the section "Risk Factors" are included in our Quarterly Report on Form 10-Q filed on November 8, 2023. Aqua Metals cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur, except as required by law.

Contact Information

Investor Relations
Bob Meyers & Rob Fink
FNK IR
646-878-9204
aqms@fnkir.com

Media
Jennifer Johnson Avril
Warner Communications
917-982-9012
jennifer@warnerpr.com

Source: Aqua Metals

 

FAQ

What is the economic incentive package received by Aqua Metals, Inc. (AQMS) from the Nevada Governor’s Office of Economic Development?

Aqua Metals received an economic incentive package of approximately $2.2 million to support the expansion of its Sierra AquaRefining™ Campus.

How will the tax abatement benefit Aqua Metals, Inc. (AQMS)?

The tax abatement provides partial tax relief over a ten-year period for approximately $17 million worth of equipment and $18 million worth of building and land improvements planned for the first phase of the Sierra AquaRefining™ Campus.

What is the projected total economic impact of Aqua Metals, Inc. (AQMS) investments and job creation to the state of Nevada?

The total economic impact is projected to exceed $392 million over the next 10 years, measured by total number of jobs, payroll, and created output.

What is the focus of Aqua Metals, Inc. (AQMS) in advancing its Sierra ARC project?

Aqua Metals is focused on developing a commercial-scale recycling facility at the Sierra ARC, with the tax abatement aimed at accelerating the facility's development.

How is Aqua Metals, Inc. (AQMS) contributing to environmental sustainability?

Aqua Metals is committed to environmental sustainability, ensuring zero wastewater production and elimination of 99% of landfill waste associated with traditional recycling methods.